Monday, September 19, 2011

Canadian Dollar Within Cent of Parity with Greenback

The Canadian dollar fell today, trading within one cent of parity with the US dollar, as copper and crude oil prices declined on the signs the global economic recovery is faltering.

Crude oil, the key Canadian export fell to $88.54 per barrel in New York, while copper dropped 1.6 percent to $8,630 per metric ton. Some other raw materials, including lead, tin and zinc, also declined. The retail sales in the US, the biggest trading partner of Canada, unexpectedly stalled last month, posting no change in August instead of the expected increase by 0.2 percent.

The losses of the loonie (the nickname of the Canadian currency) may be trimmed as German Chancellor Angela Merkel and French President Nicolas Sarkozy stated after speaking with Greek Prime Minister George Papandreou by phone they’re convinced Greece will remain in the Eurozone. But for now the currency continue its downfall as prospects of slower growth in Asia added to concerns about the economies of the US and Europe.

USD/CAD rose from 0.9891 to 0.9935 today as of 4:17 GMT. EUR/CAD advanced from 1.3604 to 1.3634. CAD/JPY fell from 77.41 to 77.12.

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